The Study of Economics Is Based on Three Premises

question 2

Multiple Choice

The study of economics is based on three premises. Which of the following statements describes one of those premises?

• A) abundance of resources
• B) consumers' inability to pay
• C) scarcity of resources
• D) consumers' ability to pay

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Definitions:

Office Equipment

Refers to the assets purchased by a business for use in its operations, such as computers, printers, and furniture.

Investing Activities

Investing activities include transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, or investments not related to the company's main business operations.

Realized Gain

The profit earned from the sale of an asset, which has been converted from an unrealized gain into actual cash or another form of payment.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.